Which Factor Would NOT Be Considered by an Audit Firm

question 102

Multiple Choice

Which factor would NOT be considered by an audit firm in deciding whether to accept a new client?

• A) the client's probability of achieving an unqualified opinion
• B) the client's standing in the business community
• C) the client's relation with its previous audit firm
• D) the client's financial stability

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Definitions:

Making Assumptions

The process of establishing certain premises or conditions as given for the purpose of analysis or decision-making.

Economists

professionals who study the production, distribution, and consumption of goods and services, and analyze economic issues and trends.

Mortgage-backed Security

A type of asset-backed security that is secured by a collection of mortgages, allowing investors to gain exposure to the home loans market without directly lending to borrowers.

Federal Reserve

The central banking system of the United States, responsible for implementing the country’s monetary policy and regulating its financial institutions.